Canada to have slower growth in housing market

Ottawa, Aug 15 (IANS) Housing market in Canada will lose some of momentum for development next year, the country's national housing agency predicted.

Canada Mortgage and Housing Corp. (CMHC) said that following two consecutive quarters of growth this year, total housing starts are estimated to be 207,200 units in 2012, but that number will fall to 193,100 units next year, reported Xinhua.

An increase in large multiple-unit projects has generated a recent spike in the new home market, partly due to high levels of pre-sales of condominiums in Canada's three largest cities: Toronto, Montreal and Vancouver. That multi-unit activity is expected to moderate next year, said CMHC Tuesday.

The resale market, however, is forecast to grow slightly next year.

CMHC predicted that existing home sales, done via the Canadian Real Estate Association's Multiple Listing Service, are expected to total 466,600 units this year and rise to an estimated 469,600 units next year.

The Canadian agency also forecast the average price of a listed home will top 377,300 Canadian dollars ($379,957) next year, comparing 368,000 Canadian dollars this year.

It also cited factors including low mortgage rates, a falling national unemployment rate, and an increase in net international migration to Canada for the country's sunny outlook of housing market.